Covering Your Assets


Julie A. Martin
By Julie A. Martin

Insurance is everywhere, and there are so many different kinds, it gets confusing. What kind of coverage are you supposed to have to cover your homes, cars, boats and other fun things that you and your family use? Is it Property Insurance or Casualty Insurance?

The answer is both. Property Insurance covers your homes, your condos, your furniture, electronics and all the things you use in your home that is not permanently attached to your home. Casualty Insurance usually refers to the items that move, such as your cars, motorcycles, boats and jet skis.

Both Property insurance and Casualty insurance include coverage for your covered items as well as liability. The liability coverage levels may go as high as 500K on a single policy. When you feel it isn’t enough to protect you and your family, there is the Umbrella policy.

Umbrella policies include coverage for liability losses over and above what your primary underlying policies would pay. For instance, if you are playing golf and you accidentally hit someone in the head with a golf ball, that person can sue you if they are hurt, even if you yelled “Fore.” The incident would need to be sudden and accidental in nature, as no intentional acts are covered.

The umbrella policy covers in levels from $1M to 5M, with requirements to maintain a minimum level of liability on the underlying policies for auto, boat, etc. of 250/500 Bodily Injury Liability and 100K Property Damage Liability. The minimum underlying liability requirement for home insurance or any property policies the umbrella covers would be 300K.

It is a common misconception that if someone has an umbrella policy, that its primary function is to pay out what is demanded. That is not how this works. The umbrella policy acts to defend its policyholder and attempt to keep the client from financial ruin. Many standard carriers offer umbrella coverage, and it is even possible to bundle your auto insurance with your umbrella in many cases for an extra multi-policy discount.

If you have more than one home, two cars and even one toy, whether it’s a motorcycle, boat or wave runner, it would be a good idea for you to have an umbrella to cover excess liability over all of your assets. Speaking with an independent agent to find out what kind of coverage is right for you will give you the peace of mind in knowing that there are no coverage gaps. And you can live your life not worrying about your insurance!

Covering your assets is only a phone call away. For more, contact me, Client Advocate at Abora Insurance Group, at 1-800-494-1333, or visit